Financial goals are different for everyone. You may want to retire early, travel more, or give your kids a debt-free education. Whatever your goals may be, it’s important to figure them out.
My financial goals are intertwined with my career goals. I don’t plan to retire early. However, I do want to have freedom in my career in medicine and research. I want to keep working because I love what I do and I enjoy every minute of it. I want the freedom to change people’s lives for the better. My priorities will remain my family and my patients, not my paycheck. I want to give a loving home to many rescued animals, especially those that others will not take. I want my children to experience the world and appreciate its many cultures. My goals have guided me to take control of my finances. Your goals can do the same. Here are four reasons why you should have them:
1. They motivate you.
If you want to make a big change, you have to have a good reason why or else you won’t stick to it. You may say that you want to save more money. However, if your drive to save is less than your love for shopping, you’ll run into trouble. You need a reason that passing up on that “must-have” will be worth it. We are all tied to our emotions and making your goals personal will remind you why you’ve decided to sacrifice something short-term for the future.
2. They provide structure.
If you want to be able to accomplish something, you need a plan. By first setting a goal, you will know what you want, then you can decide how long you want (or need) to take to get there. Setting specific financial goals with personal reasons will make it real. “I want to save $300 each month towards my travel fund so I can go visit my family in Europe next year” is more concrete than “I want to save money to travel.”
3. They reward you.
There is a sense of pride that comes along with achieving a goal. Whether big or small, there is just something about saying: “Yes, I did that.” That’s also why smaller goals can keep you motivated along your journey towards your bigger goals. Setting achievable, but challenging goals gives you the power to take control of your life. Each one that gets crossed-off is another step closer to living the life you envision for yourself.
4. They are flexible.
“Change is the only constant.” While we can plan all we want, sometimes there is no way to tell how our life will change as we take on our journey. It is important to realize that a set goal can be adapted at any time to better fit your situation. Your financial goals at 17 are likely not going to be the same as when you turn 49. Whether due to differences in your lifestyle or unforeseen circumstances, take the time to reevaluate your goals periodically. If your previously made financial goals are no longer representative of your current dreams, change them. They are there to help you shape your choices, so make sure they align with what you truly want or they become useless.
Before embarking on any financial journey, it’s important to have a “why”. Whether big or small, take the time to think about why you are making a change.
What is your biggest reason why? I’d love to hear from you!
